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Why are current customers punished for their loyalty?

TWC and now Spectrum are continuing to punish loyal customers and rewarding new customers with much lower costs of services. Don't you see why you're losing customers because if this?
10 REPLIES
Expert

Re: Why are current customers punished for their loyalty?

Because there's no competition...

 pricing is questionable, nothing published is understandable, packages are different, etc.

 

Established Sharer

Re: Why are current customers punished for their loyalty?

Every single cable and sat company operate the exact same way. It's not just a TWC/Spectrum issue, it's an industry issue. Competition is key. Just imagine how high your bill would be if there was no Dish or Directv available to most of us.

Sharer

Re: Why are current customers punished for their loyalty?


MsRaye wrote:

Because there's no competition...

 The whole merger thing is questionable!  pricing is questionable, nothing published is understandable, packages are different, etc. Phone centers have no accountability with what customers are quoted.

 


Competition is not going to have the pricing impact you think.  The market charges what the market will bear.

 

Read the following FCC report on Cable Industry Prices issued in October 2016:

https://apps.fcc.gov/edocs_public/attachmatch/DA-16-1166A1.pdf

 

Where there was an overbuild (second cable operator), the rival only was able to offer a better price for broadcast basic sercice.  The incumbent was cheapter for the other two tiers of service examined.

 

What was shocking in reading this report, has been the astronomical rise in the cost of cable programming over the last 10-15 years. 

 

In 2015, the cost of basic, expanded basic, and the next most popular tier rose from $14.30, $43.04, and $56.03 to $23.79, $69.03, and $86.83, respectively.

 

I almost spit out my coffee when I read about the increase in retransmission fees for broadcast telelvision stations.  $24.06 per year in 2013 rose to $36.10 per year in 2014.  No wonder cord cutting is so popular...  And teh sad thing is you NEED to subvscribe to the broadcast tier in order to get anyything else.

Boz
Sharer

Re: Why are current customers punished for their loyalty?


dstoffa wrote:

MsRaye wrote:

Because there's no competition...

 The whole merger thing is questionable!  pricing is questionable, nothing published is understandable, packages are different, etc. Phone centers have no accountability with what customers are quoted.

 


Competition is not going to have the pricing impact you think.  The market charges what the market will bear.

 

Read the following FCC report on Cable Industry Prices issued in October 2016:

https://apps.fcc.gov/edocs_public/attachmatch/DA-16-1166A1.pdf

 

Where there was an overbuild (second cable operator), the rival only was able to offer a better price for broadcast basic sercice.  The incumbent was cheapter for the other two tiers of service examined.

 

What was shocking in reading this report, has been the astronomical rise in the cost of cable programming over the last 10-15 years. 

 

In 2015, the cost of basic, expanded basic, and the next most popular tier rose from $14.30, $43.04, and $56.03 to $23.79, $69.03, and $86.83, respectively.

 

I almost spit out my coffee when I read about the increase in retransmission fees for broadcast telelvision stations.  $24.06 per year in 2013 rose to $36.10 per year in 2014.  No wonder cord cutting is so popular...  And teh sad thing is you NEED to subvscribe to the broadcast tier in order to get anyything else.


But does the report that you're referring to take into account "new customer pricing"?  With multiple service provider serving the same address, if the current service provider won't give satisfactory pricing, then the customer has the option to switch to another service provider to take advantage of that provider's "new customer pricing" for the next 12 or 24 months.  Then at the end of the "new customer pricing" period, if that service provider won't give the customer satisfacoty pricing, the customer has the option to switch to another service provider to take advantage of their current "new customer pricing" for the next 12 or 24 months.

 

 If service providers aren't going to treat existing customers fairly, then customers need to make them pay by switching service providers, if that option is available to them!

Sharer

Re: Why are current customers punished for their loyalty?


Boz wrote:



But does the report that you're referring to take into account "new customer pricing"?  With multiple service provider serving the same address, if the current service provider won't give satisfactory pricing, then the customer has the option to switch to another service provider to take advantage of that provider's "new customer pricing" for the next 12 or 24 months.  Then at the end of the "new customer pricing" period, if that service provider won't give the customer satisfacoty pricing, the customer has the option to switch to another service provider to take advantage of their current "new customer pricing" for the next 12 or 24 months.

 

 If service providers aren't going to treat existing customers fairly, then customers need to make them pay by switching service providers, if that option is available to them!


I recommend you read the report.  I doubt the report addresses "new" consumer pricing, but it does address DBS as being a competitor for cable television service.

 

If the only ingredient to getting a better cable cake was video serivce, then many could elect to hop between the two DBS services and the local cable company to get better rates.  But the future is in data, and that is where DBS really can't compete.

 

I can't imagine a rival is going to overbuild in an area and hope to syphon off enough customers to make their system profitable in the long term - new customer pricing or not.   For many the game will need to be played between the cable company and the two DBS Sat companies.

Established Sharer

Re: Why are current customers punished for their loyalty?

The future is definitely data and competition is the only way to drive down pricing. What does that future look like? The infrastructure costs are largely the reason for the monopolies existing in the first place. Personally, and @MsRaye won't like this, but the future of data is wireless. This is where the cell phone companies have the upper hand and are attractive buyout targets for the cable companies or they are creating their own tv services a la AT&T.

Sharer

Re: Why are current customers punished for their loyalty?


reds91185 wrote:

The future is definitely data and competition is the only way to drive down pricing. What does that future look like? The infrastructure costs are largely the reason for the monopolies existing in the first place. Personally, and @MsRaye won't like this, but the future of data is wireless. This is where the cell phone companies have the upper hand and are attractive buyout targets for the cable companies or they are creating their own tv services a la AT&T.


Competition in wireless also won't bring down rates as much as you think.  A new tier 2 player in wireless is going to need to squeeze their way in to an already crowded spectrum, and if they can't piggy-back on the incumbents towers, will need to build their own (and become a tier 1).   A big capital expense with no guarantee of return.

 

I'd rather be hard wired at home.

Established Sharer

Re: Why are current customers punished for their loyalty?

I'd rather be hard wired as well, but this generation isn't going to be around forever and the new generations are being born in a wireless world.  Yes it would take more competitors in the market to really impact prices. The presense of T-Mobile and Sprint in the market are keeping  AT&T and Verizon bills from being higher than they already are. It seems that it would be less expensive to build out or enhance a super high speed/capacity wireless network than hard wire individual homes. 

Participant

Re: Why are current customers punished for their loyalty?

When they are the only provider in town, you can do what evey you want for $$$$$$$$